tv Sunday Morning Futures With Maria Bartiromo FOX Business October 8, 2017 10:00pm-11:00pm EDT
>> good sunday morning. republicans moving full steam ahead after the house passes a budget resolution. investigators entered a second way to find a motive in the las vegas massacre. the white house may be days away from decertifying the iran nuclear deal. good morning, everyone. i maria bartiromo. thanks for joining us. this is "sunday morning futures." the house budget resolution along party lines last week helping pave the way for tax reform. what are the biggest roadblocks now? white house budget director mick mulvaney director mick mulvaney fls house ways and means chairman kevin brady. it's been nearly wicked and the
man shot and killed 50 people in las vegas. are authorities any closer? david clark will join me live. the iran nuclear deal could happen this upcoming week. i will talk with house armed service committee chairman mac thornberry as we look ahead right now on "sunday morning futures." republicans are now one step closer to one of their major priorities. the house passing a corporate $1 trillion budget plan on thursday along party lines paving the way for tax reform. the vote comes as the budget committee considers a companion plant that differs. the office of management budget or, mick mulvaney. good to see you. thanks for joining us this morning. >> good morning, maria. maria: can you give us a status check you have it are in the
house and now we're waiting on the budget committee. what are you expect them? >> actually the senate actually the senate budget committee passed there is this week. excuse me. now we'll go to the senate floor the week after next for the senate in recess next week back in their home state and will come back the following week and we expect to take the budget up on the floor of the senate at that time. that's what would happen next. maria: we are talking about the differences in terms of the senate plan in the house plan. what are the key differences? where could there be some disagreement? >> there a lot of differences and by definition some differences in the house and senate believe it or not use different rules. almost by definition regardless of what's happening in the house process in the senate process, there'll always be some differences. when you boil those away and get down to the real brass tax committee issues will be over all the details you expect
regarding reconciliation, specifically the size of the deficit. the senate has a $1.5 trillion allowance to allow the tax reforms to our into the house. we do expect the house to go along with the senate. we really don't see at this point any difficulties with the budget part of this process did the challenges comments that go beyond budget and start talking with the actual piece of legislation. maria: i want to get into the legislation today. love to get a little more detail this morning. let me ask you about this first because a lot of people saying this is an honest budget. at the same time, the budget is making certain assumptions. are you making the assumption that a repeal and replace of obamacare is present here? you make an assumption of these cuts to medicaid and medicare of $600 billion. is this an assumption the repeal and replace taxes or do these numbers does not add up?
>> the seller budget in the house budget in the senate budget i can speak to mind a little better than the house and senate. we assume the obamacare were few and replace happens. at the end of the day it doesn't make that much difference because what will happen is the budget will set the spending levels for this year. but the most important budget role of the budget. we talked a lot about the role as it relates to taxes. the driving force behind the budget is setting the spending limits for that year. that's at the budget does. we will work on to fund the government again. that is the nature of the budget that yes, it does deal with reconciliation, but it also does is funding the government which is entirely separate question. maria: i understand. is this an assumption you will be having on the savings because
of health care and now we hear this morning that the president is once again in touch with chuck schumer on the democrats in terms of their ideas on health care. it may very well be a completely different budget when you've got democrats support coming in and maybe the 600 billion in cuts on medicaid don't happen at all. >> i don't think it will change the budget because the budget will be set in the next couple weeks. anything can happen on any number of topics for national defense to hurricane relief to obamacare. you don't have to go back and change the underlying budget. i very much aware of that. he and i talked about it yesterday and is deadly serious. he was to find people willing to work with him to get things done. he's extraordinarily disappointed as many were that the senate republicans were unable to deliver on the promise to repeal and replace obamacare. i don't think folks would lean him for saying i can't work without that party, local work with another party. he won't have to go back and redo the budget.
he wanted to go back to the beginning of the tax process. so pass the budget in the next couple weeks, move to tax reform because of the budget and other topics will continue at the same time separately. maria: so what is your feeling terms of deficit neutral, revenue neutral when you look at tax reform for the overall budget. when does the deficit and debt of $20 trillion become sort of a near-term crisis situation. >> the deficit is driving why we are doing what we are doing right now. a lot of us, myself included have come to the conclusion we are never going to solve our debt problem just on the spending side. we simply can't get congress. not the political will of the parties to reduce the spending enough to balance the budget by itself. we need to look at the revenue side and not for us as republicans means growth. for example look at the last time i balance the budget in the late 1990s. the combination was fiscal restraint.
there were some spending reductions in welfare reform but it wasn't cutting their way to balance. we had fiscal restraint, slower growth in government expenditures combined with dramatic growth in the size of the economy, health of the economy. that's the model we are trying to get back to. folks asked me does he still about the deficit. i do put the best way to solve in the medium and long term is by taking it down so we can get the tax reform we need because the economy is that coming again a a healthy rate of 3%. maria: i was just talking with colleagues on "fox and friends" and i said in 1980 for you at a gdp of 7.4%. people forget china numbers are possible if they were to do the right things in terms of pulling back spending on lowering taxes to generate growth. let me ask you about one of the big debates in the tax plan right now and that is the elimination of deduction of state and local income tax and property tax, which of course the high earning states are complaining about.
they will actually see their constituents have a tax increase, aren't they? >> anytime you look at tax proposal in one line at the two higher taxes therefore it's about thing. you can't look at a piece by piece. you have to look at it holistically. when chuck schumer says this is a tax increase for every new yorker, he simply wrong. he's ignoring other things in the tax fund. let's break down the state and local tax deductibility. it's fairly simple. what's driving this for the president is three things. he wants a better tax system, simpler tax system in a fair tax system. when i explain i said look, if you and i make the same amount of money, live in a house of the same value, everything about it is the same except the state you live and in the state that i live in, should we pay the same amount of federal tax. the answer is yes. a lot of people think the answer is yes but the reality is no. folks in nebraska pay more federal tax that people do in california and that's just not
right. it helps contribute to the belief that the tax code is rigged in favor of certain people and against other people and the president wants to fix that. happy to talk about the impact. i would like to do it however in the context of a larger tax bill. when you talk about just the policy of the one particular line item in the proposal, it is the absolute right policy to have. >> i can pull out one thing as well as a look at the entirety of it, but how about the fact that top 10% pay 80% of all the tax. would tax. what you said about? >> with the most progressive tax system in the world. we do. the bottom half of wage earners in the country don't pay any tax at all. folks that take down below 40%. maria: i'm talking about the people who will get a tax increase, the 10% tops earners who will get a tax increase. i understand the corporate rate coming down. you got the repatriation, the pastor coming down. when you look at the people who
pay the most tax come and they will a tax increase. >> i don't know how you can say that. we've talked about this before on your show. i've been on the show when you choose the tax programmer of raising taxes on the rich and i go on another network and we all know which one is our and they accuse us of cutting taxes on the rich. the reason you see that diversity of opinion is we haven't set the brackets yet. we set the principles and people say that's not enough. that's a lot to have republican leadership in the house, senate and white house on the same page on some basic principles is a tremendous first step. i can make the case we are way far ahead on tax reform, further ahead on tax reform in health care. we don't even have the basic principles on health care. we've not really the details. why? not because they're hidden. we simply haven't settled on them yet. that happens during the ordinary course of business as they make legislation. it's very difficult and i would suggest impossible to look at a
particular family or group of americans and so your taxes will go up or down by the smudged until you know what those details are. and those details don't exist yet. maria: is there a big debate of this happening around the idea of a fourth bracket? >> i can't speak to that director unit is a fair question because what's driving a come and presidents to sort of fundamental driving principles or lower taxes on the middle class and then he wants to lower corporate rate. when you start talking about the fourth bracket, always sad as we are exhausted from the top bracket due to the house and senate want to talk about the, if that's what it takes to get the more they want to be on the deficit and get them where they need to be so we'll consider that. the fifth bracket right now is zero, 12, 25 and 35. something about that should feel free to do so. maria: figuring out where the whole idea of trickle-down
economics. for a long time i was under the impression that when you created an environment for the top earners, they will follow through by creating jobs in an investigating economy of so-called trickle-down economics. saying we just want to focus on the middle class. >> we are looking at what is driving this is the old monotone that a rising tide really does flip all ships. we are trying to get back to 3% growth. the cpa put out a report this week saying how they can get to 4% annual growth. that is fantastic. it sounds like it's not that big of a deal. that is a huge difference when you can't stand for long periods of time. how the american economy is a machine that creates wealth for everybody and not the machine we are trying to turn back on. maria: that's what we want to see for sure. certainly things have gotten better. i will definitely give you that.
director mulvaney, good to see you. thanks very much. still no motive for the big issue here meanwhile. the reports this morning about his mental state. what investigators are looking at now. the former sheriff will join us now. follow me on twitter@maria bartiromo as we look ahead on "sunday morning futures" right now.
spokesperson for america first action, trump super pac. it's her being here. >> a pleasure. what do you think is going on? extraordinary issues with 47 guns and planning so meticulously get in the hotel room he wanted. what do you think the motive is? >> i want to down downplay the role whether it be san diego, san bernardino, san diego. not so much the why that's important that who did this. i want to make sure it's an investigator and i don't have inside information on this but as a trained investigator and experience one a make sure we get all the efforts of co-conspiracy, people might as well plan. when we learned more, he didn't bring anybody back. 59 people dead, 500 injured dolby traumatize for a long
period of time and nothing really will change. the motive is clear to me. this guy wanted to slaughter people. i think that's more important. this is a tedious part of the investigation. things start to slow down for the investigators. it's like emptying a box of the jigsaw puzzle. sort them out through the evidence was a lot of evidence testing, forensics to make sure that the weapons used were the ones fired with other weapons and actors that are more important to the investigators at this point. maria: that's why ask you. you are trained investigator. what are the authorities looking at right now? we thought maybe we would have some good intelligence after the interview with his partner in the girlfriend, someone that they are not releasing what they
found from her. what are they turning over to get a better idea of what drove this guy? >> i want to get too much inside of there had for going back to my experiences, there's additional people they want to interview. this will take a long time and i understand the public gets a little restless at this stage because we all want to know, but the fact is we have to let these people do their work. they're good at what they do. local investigators and federal authorities will give us the remission when they deem it important and necessary. to spoonfeed untutored direct hit of information they fill in the gaps of step they don't know when all the sudden conspiracy theories and things like that. patience is what i always preach. people are good at what they do and at some point there will be a final report as to everything that happened here.
maybe a better mode of, but i still think the motive in these things is over rated. the motive if he wanted to kill a lot of people. maria: i understand that and i agree with that. we are just trying to understand what was going on at this point. is there anything the country should be doing to better protect themselves do not have a person goes so high up to shoot in a barrel like that. >> what we always learn from these things as people saw something that may be at the time they didn't think too much about it. they see something, say something campaign can be reevaluated. we had to do a better job so we can train them in a non-going basis. you can't just say see something, call police or 9-1-1. entertaining the public will engage them until we get the public fully engaged in this because police are not on the
present. very hard to stop these things in the future. >> david clark, good to see you. thank you so much. president trump could soon make a move on the iran nuclear deal next week. talking what mac thornberry next. back in this is what it's all about, jamie -- helping small businesses. damage your vehicle? we got you covered. [ glass shatters ] property damage? that's what general liability's for. what?! -injured employee? -ow. workers' comp helps you pay for a replacement. what's happening? this is carla. how's it going? and if anything comes up, our experts are standing by. ♪ boo!
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maria: welcome back. the white house reportedly moving forward towards pulling the u.s. out of the iran nuclear deal. the deadline to recertify iran's compliance is a week from today. joining me right now is texas congressman mac thornberry to mature and of the house committee. good to have you in the program. thanks for joining us. >> for having me. maria: do you think the president will go to decertify the iran deal?
>> i don't know for sure, but i think he may well. it's important for everybody to understand the certification we are talking about is not part of the iran agreement. it is a reporting requirement to congress that actually goes beyond the iran agreement. so it may be that the president says look, this is i have concerns about this. they are not letting us into all decide. i have doubts whether this is in the best interest of the united states. but still not reimpose sanctions, not actually withdraw from the agreement itself. maria: he pushes it onto congress and you and your colleagues have to decide what action is to be taken. for example, when you mention sanctions, reinstituting sanctions is one idea. but if the u.s. is doing that alone, doesn't really matter? you've got five other countries right here. that will weigh in. even if congress decides we are going to reduce sanctions, is
that really any impact given with that other countries that will have to make a decision in that regard as well? >> well, you can have an impact. we are still the biggest most powerful economy and we can make a difference. but i think really the issue, one of the fundamental flaws of the nuclear deal but that just focused very narrowly on their nuclear program. not on the broader range of iran's malicious activities. i think that is the goal of the white house here. let's have a broader strategy that looks at everything that iran does and that may involve sanctions. it may involve a variety of other things. but let's look at this more broadly. not just focus on technical compliance with a flawed agreement. >> if he does not recertify iran's compliance, what does that mean in terms of congressional action? >> well, simply means under congressional procedures there can be expedited consideration
of re-imposing sanctions. technically. but the key question, maria, is what does the president say are his reasons and what does he asked congress to do? again, my hope in what i've encourage them to do is look at this more broadly than technical compliance with one agreement. the other thing is we can -- what we are talking about are pieces of paper. what backs up those pieces of paper is the most important thing and that is our power. u.s. military power. and so whether we are talking about iran or korea, china or russia, the best thing that we could do however the certification issue comes out, the best thing we could do is get serious about rebuilding and growing our military. that is the ultimate backstop. maria: obviously you are happy with the numbers in the budget in terms of military spending. >> well, i'm happy with what the
house has passed the senate but 89-8 and the president that the u.n. endorses numbers. what i worry about is people in both parties try to use military spending. republicans say they will increase defense spending only if they cut other spending. democrats will increase other spending. we need to evaluate defense spending on its merits, look at the threats around the world. look at the increasing accident rates. unfortunately we are seeing in our military and do the right thing by them and leave those other issues for other behaviors. maria: you play with it like it's football. meanwhile the military hanging in the balance. our navy is some of the oldest fleet that we know what that some of the ships apparently airplanes rather are not usable. for an actual combat situation. general jack keane says up to 50% are not ready. >> most americans don't know
that. for the navy, half of their planes cannot fly because of mechanical reasons. another example. we've had two tragic accidents, almost two destroyers now being repaired. it turns out some of those sailors on the ships were working 100 hours a week. they were deployed so often they never got the training they were supposed to get. those ships are out of certification because they are always on guard trying to protect us against north korea. so we need to repair, but we also need to grow because the threats are not shrinking. unfortunately we have shrunk our military too much. maria: you make a lot of important points. let me ask you about north korea before you go. the october 10th day floating out there that kim jong un's regime wants to do something in terms of rockets being sent at what is the answer to the north korean threat is clearly become much more dangerous? >> the number one answer is we
need more missile defense right now to protect ourselves and our allies. we also need more ships and planes come in ammunition to write their on china's doorstep to encourage them to be much more aggressive iranian north korea in. look, it may come to military confrontation. we can win, but it will be ugly. but the way to prevent war is to be strong and unfortunately because of the actions we were just talking about, we've got two fewer destroyers in the pacific then we had a few weeks ago. >> dangerous moment in time for sure. before you go, do you want to see the u.s. with the iran nuclear deal? >> i do not want the u.s. to pull completely out because the plane load of cash and the benefit of it. i do want us to look at everything that iran is doing. missile programs, problems when
the young man comes back to growing and strengthening our military. to me that more important. maria: good to see you. chairman mac thornberry. seen as a step towards tax reform. the house ways and means committee chairman kevin brady will be back with me as we look ahead on sunday morning future is back in a moment. ro
maria: the house passing a $1.1 trillion budget. it's the first step to passion tax reform, that doesn't mean it will be easy to get there. joining me is kevin brady, the chair of the house ways and means committee. we have been following your work, you have been doing great in terms of coming forthwith a plan and communicating it to the american people. we spoke to you in september and this is what you said about that. >> you will see details about our business and individual rates going forward on tax reform. dramatic simplification of how we tax. businesses can compete anywhere
in the world and win. especially here at home. maria: where are you now, mr. chairman? >> one big step closer would be the answer. for the budget to pass the house is the crucial step. it can't be skipped. it gives us the runway to land pro growth, middle class tax reform. in my view there is a sense of urgency on both sides of the capitol that we get this done. from a timing standpoint. once that budget is agreed to, it's signed, sealed, and delivered. then we'll bring forward the full tax reform plan. they continue to push forward. then the work will be done to reconcile the differences.
get that approved, and we'll move immediately into house action on the tax reform plan. maria: one of the issues we have been digging deep into is elimination of the deduction on state and local income tax, property taxes as well. one of the members of congress was in that meeting you had last week in steve scalise's office to talk about the high-income states. you had representatives from new york, new jersey connecticut, et cetera. they are pushing back saying if you eliminate that deduction it will mean higher taxes for my constituents. would you put a cap on the amount of money you could deduct? is there a way to get around this since you are getting so much pushback on that one deduction. >> we need to lower taxes for
all americans regardless of whether they are in a low tax or high tax state. they like the postcard approach where we keep the mort gaining deduction and child tax credit. we want to find a way forward to make sure those in high tax states like new york, illinois and california see tax relief another well. it's stunning how high their property taxes, their sales taxes their income taxes are. the current tax taxes american double. at the local level, then at the federal level. we are making sure we can provide tax relief for families in those high tax states as well. maria: if you make any more than $400,000, is that the number? then you can't deduct it?
>> not necessarily, no. we are talking about making sure -- we are lowering the tax rates at every level. we have not decided what the income tax brackets will be to make sure we can address and create tax relief at every level. we are driving a middle class tax relief in president trump's preforms. i think the focus will be more on the where those brackets are set and how we address the baneful subject of property taxes. that hurts families in every state. so we are looking at that from a homeownership and local deduction issue. maria: in peter king's district you are talking about property taxes on average people $15,000 and up. and even more in some areas. would you consider a cap on that? is that what usual looking at
different levels? and if you have a cost higher than a certain number, then you will be able to deduct it? >> too early to tell. that's why we are having these discussions. what is that median household in peter king's district? we know it's around $70,000. that family of four is $100,000, they may be itemizing. right now they are getting taxed high locally. they are getting artificially taxed higher at the federal level out of washington. how do we stop that double taxation and people just pay what their local taxes are. maria: you look at a governor cuomo. he says then they take away the deduct built of state and local because they don't want to
subsidize new york state. what do you say to him? >> i don't know governor cuomo. i just get a little suspicious when the same politicians who have been work so high to raise your taxes are suddenly concerned about your welfare. in some states these same people are raising taxes on every level, trying to shift that on to others including working class families who don't itemize. why don't we stop all that gamesmanship. lower taxes at the federal level for every american so they can keep more of what they earn. maria: let's talk about the corporate side of things. that's moving the needle on economic growth. you take in the rates at 20%. the president said the corporate red line is 20%. are you getting pushback that
people want to see that corporate rate higher than that? >> we aren't. we think it's the sweet spot in a major way. it will allow main street businesses to invest more in their workers and success and their community. if we get this right so you are businesses can compete and win anywhere in the world including here at home, guess what happens? pay checks go up. that's what we are driving toward. families having more money in their pocketbooks. maria: it feels like we have two steps forward and two steps back in terms of the economy. we did not get a good jobs number this last friday but it was distorted by the hurricanes. >> the big picture is it's been 31 years since washington changed the tax code.
they all modernize their tax codes, lower their rates. they are just handing our heads to us on the tax code. so we have to compete and win. we have to simplify and be pro growth. our businesses on main street in every community in this country will be stronger hiring more and increasing those pay checks. maria: good to talk with you, we'll be following it. thank you so much. president trump says he has full confidence in his secretary of state. rex tillerson, could his days be numbered? it's easy to think that all money managers are pretty much the same. but while some push high commission investment products, fisher investments avoids them. some advisers have hidden and layered fees.
fisher investments never does. and while some advisers are happy to earn commissions from you whether you do well or not, fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management.
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maria: secretary of state rex til were on shooting down reports that he was thinking of resigning over the summer. the president says he has full confidence in tillerson but he can be a little bit tougher at times. your thoughts on what went down last week in terms of rex tillerson. >> obviously when the president tweets that you are wasting your time, et cetera, that is not being supportive. fit was a well thought out planned initiative by the government so it looks like good top, bad cop, so tillerson and mathis could go -- maria: i don't think it was good cop-bad cop. >> losing a secretary of state
would be a sign of disarray and weakness, not strength. that's the last thing that needs to happen. i don't think tillerson will resign. i think mattis wants him and he will stay the course. rich: they don't want him to go now. he had another cabinet minister quit. but he's not been a good secretary of state. he's an oppressive man. when with you asend the to the head of exxonmobil, usual the president of a quasi president. he doesn't have a good relationship with congress or the media establishment. and he's out of sympathy with trump's policy goal. maria: i understand that press conference he gave up last week.
you would think if you don't want the media to hang on something you said, you don't say it again. i think all the reasons that you say are right. he can't step down now. they will put nikki haley right in there, you know that. >> it's just not a good sign. i believe two of the people the president respects the most of, his chief of staff and that is the secretary of defense, are strong allies of tillerson continuing on. again it sends the wrong signal. maria: so many issues on the foreign policy scorecard. whether it's iran, is he going to decertify, then there is north korea. then there is the fight between the saudis and the qataris. there is a lot going on when you
need the president and the secretary of state. rich: tillerson is at a different place than the president is. you don't want trump's twitter feed establishing foreign policy. but in the medium term he would be better served with another secretary of state. someone who gets what he wants to do and works with him on it. maria: we'll take a break. i wanted to ask you about the other positions in the white house. we are look ahead on "sunday morning futures." stay with us. ♪ stare with me into the abyss ( ♪ )
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maria: we are back with our panel. people like that the president has his ways. he communicates with his people through twitter an has back and support for that. >> you don't say cabinet members like the attorney general and secretary of state aren't doing their job well basically. it's just not the way to do it. it shows discord. number two, when you talk about things that are as important as the iranian deal, i thought it was a terrible deal. absolutely horrible. but you can't willy-nilly say we are going to pull out. if you pull out, all the other european countries are not going to support an economic boycott
against iran. bar are's basically saying look, they have not been in compliance. you do something. if you do something in terms of instituting sanctions, there is no promise other countries will do the same thing. rich: he's going to decertify, he's not going to say this agriements in our vital national interests and it's not. and they will work on pressuring the iranians on a few of key things. eliminate something of these sunset clauses and ballistic missiles. maria: you heard my conversation with chairman brady the chair of the house ways and means committee. you don't think they will get this done if they include the elimination of the state and local income taxes. >> if they include those
elements there are 50 republican congressmen who cannot vote for that bill. two republicans. they are saying publicly, i can't vote for it. you know what it would do to housing values if you can't deduct your taxes and interest rates. housing throughout the country. but particularly in states like new york and new jersey. you have got 50 republican congressman, 25 of them at least will vote against it. you can't pass the bill. rich: the way it works now we are subsidizing high-tax states. it will be stripped off and leave a big hole in revenue. i think failure is an option. then you have senators who are willing to go their own way.
>> lou: good evening, everybody. the leaders of the september intelligence committee are co-cob spir thors of the russian which hupt. chairman senator richard byrd led them for nine months and the result no evidence of russian collusion with the trump administration or vice versa and not one iota of evidence for the fbi's year long investigation. in all 21 months of investigations and nothing